Embracer splits again into Fellowship Entertainment and keeps key IPs

Embracer, a major player in the games industry, has announced that it is splitting into several entities once again. This is the third consecutive year the company has taken this step. Embracer’s founders have chosen to place IPs, including the acclaimed Lord of the Rings, under the newly formed Fellowship Entertainment. The less popular intellectual properties (IPs) will remain with Embracer itself.

Background on Embracer

Embracer is an investment holding company that has drawn plenty of attention in recent years thanks to its aggressive acquisition strategy, bringing in several of the biggest and most troubled names in gaming. In 2024, the company went through its first split, with various smaller brands and a tabletop gaming business spun off. These phased splits have been a way to improve focus and efficiency within the organization.

Purpose of the split

The goal of the latest split, announced on May 20, 2026, is to increase management focus. Lars Wingefors, chairman of Embracer, said it is essential to unlock the full combined potential of the IPs, and that the new structure will allow Fellowship Entertainment to develop as a more traditional game publisher. Wingefors believes the franchises under Fellowship Entertainment are among the most undervalued in the industry.

Key IPs under Fellowship Entertainment

A number of major franchises will be housed under the new Fellowship Entertainment entity, including:

• Lord of the Rings
• Tomb Raider
• Metro
• Dead Island
• Deus Ex
• Time Splitters
• Thief
• Legacy of Kain

This strategic move can be seen as a way to better respond to market demand and ultimately deliver a more robust slate of game releases. Wingefors also said there are plans to release at least two games every year.